Monday, May 20, 2013

Video Search: Timeline From Pad Preparation To First Royalties

A reader is looking for a video timeline of the oil patch process, from pad preparation to first royalties.

I've done a quick search, unable to find anything.

If anyone can locate that video, please let us know.

Thank you.

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Timeline from applying for permit to first royalty. See comment below. I moved that information up here for easier searching. I also provided a link to this timeline at "FAQ" -- question #28.

An overall average would go something like this:
  • "Permit to drill" to building of drill pad: 1 to 3 months. 
  • build the site: 2 - 2 weeks
  • rig arrives on site: 1 - 2 months later
  • time to reach total depth: 1 month for each well on site
  • wait for fracking after last well is drilled: 4 - 6 weeks
  • each well to be fracked: 5 - 10 days
  • production begins
  • first royalty check: 100 - 150 days after production begins
  • first royalty check delays due to title issues
Total: assume up to a year. Anything shorter than that -- wonderful.

On multi-well pads, it is my understanding that they won't frack the wells until the last well is drilled. I also see "boiler-plate" requests to delay drilling 90 days early in the process.